Power Finance shares give up early gains on raising borrowing programme to Rs 1 lakh cr

After opening in the green on January 5, shares of Power Finance Corporation gave up their early gains, when the company raised its market borrowing programme to Rs 1.05 lakh crore.

As of 10.18am, the Power Finance stock was trading at Rs 405.3, lower by 0.11 percent on the NSE, compared to the closing price of the previous session.

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The borrowing programme was for Rs 80,000 crore for the current financial year. The borrowing is under various debt segments such as bonds, debentures, term loans, external commercial borrowings and more on both, public or private placement basis.

“The funds under the said revised market borrowing programme will be raised, from time to time, during the financial year 2023- 24, with the approval of the competent authority as per powers delegated in this regard by the Board of Directors,” said the company in a filing with the bourses.

On January 3, Power Finance Corporation inked an initial contract with the Gujarat government to provide comprehensive financial backing for the state’s generation, transmission, and distribution projects.

The collaboration is set to facilitate long-term debt and other critical funding necessities vital for executing diverse projects across the state. Under the terms of the MoU, the envisaged financial assistance stands at an impressive Rs 25,000 crore, dedicated to powering up various projects across Gujarat, the company said in an exchange filing.

Over the past six months, shares of PFC have risen 127.22 percent, more than doubling investors’ gains.

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